From Storefront to Doorstep: Why Retailers Are Turning Stores Into Fulfillment Hubs

The Shift Toward Store-Based Fulfillment

The traditional retail supply chain is undergoing a radical transformation. As customer expectations continue to rise—demanding faster, cheaper, and more flexible delivery—retailers are looking to their own storefronts as the solution.

This shift was a major theme at Home Delivery World 2025, where industry leaders echoed a common belief: brick-and-mortar locations aren’t just places to shop—they’re critical to winning the last mile.

1. The Case for Fulfillment Through Stores

Using retail locations as fulfillment hubs isn’t new, but its adoption has accelerated for good reason:

• Closer to the customer: Fulfilling from nearby stores reduces the delivery radius, cutting down on travel time and cost.
• Faster delivery times: Same-day or next-day delivery becomes possible when orders are shipped locally.
• Better inventory utilization: Instead of relying solely on centralized distribution centers, retailers can fulfill orders from wherever inventory exists.
• Improved ROI on physical space: Storefronts become multi-functional assets, blending commerce, fulfillment, and logistics.

This strategy helps businesses meet modern expectations—without the overhead of new infrastructure.

2. Why It’s a Win for Last-Mile Delivery

Last-mile delivery is often the most expensive and operationally complex piece of the logistics puzzle. Fulfillment from stores tackles that head-on:

• Shorter delivery routes = lower fuel costs and reduced time in traffic.
• Quicker dispatch options = better SLAs and customer satisfaction.
• Greater flexibility = allows routing to the best available driver (your own or third-party).
• Hyper-local fulfillment = lets customers receive their orders without waiting for a package to travel cross-country.

For brands using a platform to manage driver assignment and routing, this local model unlocks major efficiency gains.

3. Real-World Trends from the Field

At Home Delivery World, conversations with retailers underscored this momentum:

• Big-box retailers are moving to store-level micro-fulfillment as a strategy to compete with same-day offerings.
• Grocery and pharmacy chains are dispatching from stores to shorten delivery windows and meet tight compliance requirements.
• Apparel and specialty brands are enabling store teams to fulfill online orders faster than their DCs can.

While many of these retailers didn’t set out to become logistics operators, adapting store-level fulfillment has proven both practical and profitable.

4. Challenges Retailers Should Anticipate

This model is promising—but it isn’t without friction:

• Store staff bandwidth: Fulfilling deliveries while managing foot traffic can stretch resources.
• Technology gaps: Many retailers still lack centralized systems that sync inventory, orders, and delivery workflows across locations.
• Inconsistent SLAs: Delivery quality can vary store to store without clear processes and performance oversight.
• Packaging and branding: Store teams may not be equipped to pack items according to brand standards for delivery.

The key is in building systems that make fulfillment easy for store teams and seamless for customers.

5. Building the Right Stack for Store Fulfillment

Here’s how to make store-based delivery fulfillment work:

• Smart delivery management tools: Automatically route orders to the best store and driver based on inventory, proximity, and capacity.
• Local driver networks: Tap into flexible last-mile resources (e.g., hybrid or third-party providers) to scale without adding vehicles.
• Real-time inventory sync: Ensure what’s available online is accurate for each store, avoiding cancellations.
• Branded tracking experiences: Let customers follow their order—whether it ships from a DC or down the street.

As more retailers embrace this model, platforms that handle routing, assignment, and multi-location orchestration will become essential infrastructure.

6. Metrics That Matter

To keep store-based fulfillment running smoothly, track these KPIs:

• Store-level fulfillment rate: What percentage of orders can be fulfilled locally?
• On-time delivery rate by store: Are some locations consistently hitting or missing SLAs?
• Cost per delivery: How does store-fulfillment compare to DC-fulfillment in cost?
• First-attempt success rate: Are deliveries from stores as reliable as centralized ones?
• Customer satisfaction: Does local fulfillment improve NPS or CSAT?

Use this data to adjust routes, staffing, and workflows in real time.

Stores Are Your Hidden Logistics Asset

Retailers don’t need to build new warehouses to compete on speed—they just need to rethink the role of the space they already have.

By transforming stores into fulfillment hubs, businesses can:

• Shorten last-mile delivery times
• Reduce operational costs
• Improve customer satisfaction
• Stay competitive in a fast-shifting landscape

If 2024 was the year of rethinking supply chains, 2025 is shaping up to be the year of operationalizing them—right from the store floor.